The Saudi Council of Ministers decided to transform the Saudi Grains Organization (SAGO) into the General Food Security Authority (GFSA), and approved the draft organizational arrangements for the entity.
The move came to confirm the government’s keenness to maintain the security of the food sector, in light of the recent challenges caused by the Russian-Ukrainian crisis, which impacted prices of food and commodities.
SAGO is considered one of the first sectors targeted by the Saudi government’s privatization program. In July 2021, the National Center for Privatization announced the sale of the second and fourth mill companies, the final stage of the process of privatizing the flour production sector.
The award of each milling company was decided based on the highest financial bids submitted by qualified strategic investors.
Since the beginning of the global food crisis, the Saudi government has taken measures to ensure the availability of basic commodities.
Last year, Custodian of the Two Holy Mosques King Salman bin Abdulaziz issued a directive approving the allocation of 20 billion riyals ($5.3 billion) to address the repercussions of rising global prices, including 10 billion ($2.6 billion) for beneficiaries of social security and the Citizen’s Account program.
Crown Prince Mohammad bin Salman bin Abdulaziz has also emphasized the necessity to help the most needy citizens in the face of the rise in prices, during his presidency of the meeting of the Council of Economic and Development Affairs at As-Salam Palace in Jeddah last year.
The Crown Prince underlined the important role of the relevant ministries and government agencies in monitoring developments regarding supply chains, product abundance and price levels, as well as protecting and encouraging fair competition, and combating and preventing monopoly that affects legitimate competition and the interest of the consumer.
